Looking to either buy or sell a car in a foreign market? Currency can play a huge role in this however don’t forget if the Regional Specifications are right! You can see our other DIY post on checking to see if it is worth to buy or sell in another country HERE – Regional Specifications
Once you have overcome the Regional Specification obstacle the next important fact is to see if the price is right! Currency and the current FOREX is a key component. A great example is the US Dollar vs the Canadian dollar. When the CAD was a par with the USD Canadians love to shop south of the border as their money goes a long way in a country where there is a population much greater. On the other hand, when the USD is higher than those south of the border should consider shopping north as their dollar is much stronger and they might be able to benefit from the exchange rate.
Although currency may not be the only motive for buying from another country, you may be buying because there was a certain model/make of vehicle that was never available in your country. Some specialty vehicles may not be available which you may want to have. Taxes and Duties is something that you must consider as sometimes there can be as much as 100% tax on the import of a vehicle such as importing into China from another country. On the other hand, vehicles manufactured in North American (Canada, United States and Mexico) can be imported and exported with no duty under the North American Free Trade (NAFTA) agreement.
Again it is extremely important to do your homework on this topic as duties and taxes can very quickly offset or exceed any potential savings you may have believed you would have had with an international vehicle purchase.